Strategic Marketing

Mohammad Faisal FA17-MBAR-0008

Quiz Number 2
1. Profitability vs Cost
Profitability
Profitability in marketing strategy is vital to check that what kind of business makes difference
and it is used to develop strategies for allocation of resource and marketing. It is a set of matrix
which apply by the organization in business to make money after deduction of all direct and
indirect expenses to figure out the profitability.

As far as profitability is concern in respect of new product which was launched by the Pepsi Co
by targeting female segment, they have taken gigantic step because female do not have such type
of product which have value in their mind and give them satisfaction which resulting to increase
the productivity as well the profitability.

Cost
The organization look after everything prior launching the product i.e. R&D, segment, product
price which customer absorb, market condition, competitor price and their existing product, raw
material cost, Factory Over Head, direct and indirect expense. Organization look marketing mix
as well by costing the product such as Product, Price, Promotion, and Place and all said
dimension has included in the cost by the Pepsi Co prior launching the product.
2. Growth and Stability
The growth stage is the period where the consumer accept the product and product spread in
wider range in the market which resulting to start to increasing the sales and revenues. The
product which has launched by the Pepsi Co. has a growth in the market because their target
market is big who wants this type of product in the market which they did not enjoy the same
and the product growth rate is very high as compare to other product because Pepsi Co is a brand
and brand has itself a value in customer and / or consumer mind and the product which consumer
has not enjoyed in past and come in market through giant in market automatically take positive
impact in the market and when the product come which desire by female from Big name will
take high voltage of growth.

Stability means that the how long the product maintain the market share without any changes,
and this is a big challenge of any organization to maintain the same because lot of product
decline after the growth stage and only lesser product make stability and retain the market share.
The product which has launched by Pepsi Co has chance to stable but they need the energetic in
all aspect i.e. advertisement, feedback of customer in order to maintain the market share.
3. Segmentation Differentiation
The segmentation differentiation is the strategy that company sells their product to specific
segment which allow them to create a special market, increase customer and / or consumer,
generated sales, revenue and profit.

The segment which has chosen by the Pepsi Co is female which is the big market segment that
have chosen by the Pepsi Co and reason behind this segment is that in past there is no drink like
Pepsi Co which has launched and female did not enjoy the drink Pepsi Co which is big
difference from all other energy drink because other did not care while making and formulating
about women physical condition which they suffer during different stage in their whole life and
these drinks have lot of negative impact and make effect on their internal body; therefore, female
avoid such type of energy drink and don’t take interest to take of these drinks.

But Pepsi co has look after all aspect of female life while making and formulating and it has lot
of features and the drink which has produced by them has no negative impact of female life and
product which called “Zzzwitchh” is useful for them by taste, and there is no effect on their
internal body which is the big difference from other energy drink. It has beneficial to them to use
this product at any stage which experiencing during their life and it has a value in female mind.

Consequently, the female has attracted with the features which have in this product and this is
the competitive advantage of Pepsi Co with their competitor and female are buying and / or
taking the product without any hesitation.